Advance Tax Credits: Reconciliations and Repayments

README for Code and spreadshet Files

by David Splinter, James Elwell, and Lin Xu

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//// Overview
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Output files are noted below and in the online Excel spreadsheet used to produce tables/figures.

This study makes use of confidential taxpayer data, which cannot be posted. 
To access these data, researchers can apply to the IRS Statistics of Income Joint Statistical Research Program 
at www.irs.gov/uac/soi-tax-stats-joint-statistical-research-program

Code was used for initial extracts of confidential tax data that cannot be posted.
This code can be shared upon request for researchers with access to the tax data and IRS emails.

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//// PTC: Population Data
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Tax data is IRS population data was last accessed March 2025.

Summarize_population_data.do outputs results for Figure 2: 2022-2023
Trueup_decomp.do outputs results for Figures 4B, 4C, 4D

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//// PTC: SOI (INSOLE) Tax Data
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IRS Statistics of Income (SOI) tax data are representative samples (about 1 in 1000) of cleaned tax data.

batch_f8962.do and batch_f1095A.do call process_f8962.do and process_f1095A.do, respectively, which extract and clean individual return and information return data, and create analysis variables.
f8962Params.xlsx contains the poverty and tax parameters needed to calculate PTCs in each year
batch_figures.do does final data cleaning, and calls the four figure files for Figures 2, 3B, 3C, 3D, 4A (note that code output uses different numbering though)

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//// CTC and EITC: SOI (INSOLE) Tax Data
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AdvanceCredits-CTC-EIC-Mob-NTJ.sas: Run these macros at bottom of code for specified output:
%TransitionTables(2021);  * Fig 1 density, Table A1;
%CTCdist2020; * Figure 5A;
%CTCdist2021; * Figure 5 A/B/C/D;
%EICdistrib(1979,1999); * Figure 6 A/B;
%EICdistrib(2000,2010); * Figure 6 A/B/C/D;

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///// Data Output & Figures
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See the online Excel spreadsheet for data output and making final tables and figures